Aircraft Orders & Deliveries
Widebody Aircraft Supply Tight as Boeing and Airbus Face Production Challenges
Boeing and Airbus face supply chain issues and production delays amid strong global demand for widebody aircraft, causing prolonged shortages.
The Squeeze on the Skies: Why Widebody Aircraft are in Short Supply
The global aviation industry is currently navigating a period of significant turbulence, not from weather, but from a severe bottleneck in the supply of widebody Commercial-Aircraft. These larger jets, the workhorses of long-haul international travel, are facing what Aengus Kelly, CEO of the world’s largest aircraft leasing company, AerCap, has described as an “extraordinarily acute” supply situation. This scarcity is not a simple matter of production lines running a little behind schedule; it’s a complex issue stemming from a confluence of persistent supply chain disruptions, skilled labor shortages, and a surprisingly robust resurgence in post-pandemic demand for international travel. The result is a significant imbalance where Airlines are eager to expand their fleets, but the two main Manufacturers, Boeing and Airbus, are struggling to keep pace.
This production crunch has far-reaching implications for the entire aviation ecosystem. Airlines are forced to delay expansion plans, rely more heavily on older, less fuel-efficient aircraft, and compete for the limited number of available new jets. This, in turn, affects ticket prices, route availability, and the overall passenger experience. The situation is so pronounced that Kelly has stated he does not expect the manufacturers to surpass their previous production peak of 2016 within this decade. This long-term forecast signals a prolonged period of adjustment for the industry as it grapples with these fundamental constraints on growth.
Understanding the root causes of this widebody deficit requires a closer look at the challenges plaguing the manufacturing giants and the broader economic forces at play. From specific program delays at both Boeing and Airbus to the ripple effects of global supply chain fragility, the factors are interconnected and complex. As the demand for long-haul and premium travel continues to climb, the pressure on the supply side intensifies, creating a dynamic and challenging environment for airlines, lessors, and manufacturers alike.
Production Headwinds at the Manufacturing Giants
The two titans of aircraft manufacturing, Boeing and Airbus, are both facing significant hurdles in their efforts to ramp up production of their flagship widebody models. These are not isolated incidents but rather a series of interconnected challenges that have created a systemic slowdown across their production lines. The issues range from specific program delays and quality control problems to the broader, more pervasive issue of a strained global Supply-Chain.
Boeing’s Bottlenecks
The American manufacturer, Boeing, has a long-term forecast that anticipates a need for nearly 8,065 new widebody airplanes through 2043. However, its current production capacity is being hampered by several key factors. The 787 Dreamliner program, for instance, has been subject to ongoing quality control issues that have previously led to significant delivery delays. While the company delivered 24 of the jets in the third quarter of 2025, the pace is still below what is needed to meet the surging demand.
Adding to the pressure is the much-anticipated 777X program, which has been beset by significant delays. The certification of this new flagship widebody has been pushed back, with initial deliveries now not expected until late 2026 or possibly even 2027. This delay has a cascading effect, forcing airlines that had planned on integrating the new, more efficient aircraft into their fleets to seek alternatives or extend the life of their existing planes. Furthermore, labor issues, including strikes in 2024, are expected to have a continuing impact on production throughout 2025.
The combination of these factors creates a challenging picture for Boeing’s widebody output. While the company is making progress in clearing its inventory of stored 787 jets, the fundamental constraints on new production remain a significant obstacle. The strong demand for its widebody models is a positive sign, but the inability to meet that demand in a timely manner is a source of frustration for both the manufacturer and its airline customers.
The open-order backlog for commercial aircraft would take an estimated 13 years to clear at 2023 delivery rates.
Airbus’s European Challenges
Across the Atlantic, Airbus is facing a similar set of challenges. The European manufacturer is aiming to increase production of its popular A350 to eight aircraft per month in 2025 and ten per month in 2026. However, these ambitious targets are being threatened by “many complications” with key supplier Spirit AeroSystems, which could delay the planned ramp-up. The production of the A330 family has stabilized at a more modest rate of approximately four units per month.
Further complicating the situation is the delay in the debut of the new A350 freighter variant, which has been pushed back to the second half of 2027. This is a setback for cargo operators who were counting on the new aircraft to modernize their fleets. Like Boeing, Airbus is also grappling with the broader effects of a fragile supply chain, which is impacting the availability of everything from engines to raw materials. These disruptions are a major impediment to meeting the travel demand and have a ripple effect across the entire industry.
While Airbus has a strong order book, with a projected demand for 8,200 widebody deliveries by 2044, the immediate challenge is one of execution. The company’s ability to navigate the current supply chain environment and resolve its production issues will be critical to its success in the coming years. The demand is clearly there, but the ability to supply is the question that looms large over the manufacturer’s future.
Demand Soars While Supply Stumbles
The production challenges at Boeing and Airbus are being exacerbated by a powerful surge in demand for air travel, particularly in the long-haul and premium segments. The post-pandemic recovery has been stronger than many anticipated, with passengers showing a renewed appetite for international travel. This has put immense pressure on airlines to expand their capacity, leading to a scramble for available aircraft, both new and used.
The Post-Pandemic Travel Boom
The rebound in air travel has been a welcome development for the industry, but it has also exposed the vulnerabilities in the aircraft supply chain. Airlines are responding to the surge in demand by increasing their premium seat offerings on widebody aircraft. United Airlines, for example, now has the highest percentage of premium seats among major U.S. carriers. This trend is a clear indicator of where the market is heading, with a greater emphasis on comfort and service on long-haul routes.
This focus on the premium market is driving a wave of new Orders for widebody jets. Recent notable deals include Qatar Airways’ order for 160 Boeing widebodies and Indian carrier IndiGo’s commitment for up to 60 Airbus A350s. These large orders underscore the confidence that airlines have in the long-term prospects of international travel, but they also add to the already lengthy backlog of aircraft waiting to be built and delivered.
The intense demand for new aircraft has also created a very strong market for used planes. Airlines are turning to the second-hand market to fill capacity gaps while they wait for their new jets to be delivered. This has driven up the value of existing aircraft, a trend highlighted by AerCap’s recent decision to raise its full-year earnings guidance, citing record gains from the sale of aircraft.
Concluding Section
The current state of the widebody aircraft market is a classic case of demand outstripping supply. The “extraordinarily acute” shortage described by AerCap’s CEO is the result of a perfect storm of factors: a surprisingly strong post-pandemic travel boom, persistent and widespread supply chain disruptions, and specific production challenges at both Boeing and Airbus. This imbalance is not a short-term issue; the consensus among industry experts is that these constraints will likely persist for the remainder of the decade. This will have a lasting impact on the aviation industry, shaping the fleet strategies of airlines, the business models of leasing companies, and the production priorities of manufacturers.
Looking ahead, the industry will need to find innovative solutions to navigate this challenging environment. This could include a greater focus on supply chain resilience, increased investment in new production technologies, and a more strategic approach to fleet management. The high demand for both new and used aircraft is a testament to the underlying strength of the aviation market, but the ability to meet that demand will be the defining challenge of the coming years. The squeeze on the skies is real, and how the industry responds will determine its trajectory for the foreseeable future.
FAQ
Question: Why is there a shortage of widebody aircraft?
Answer: The shortage is due to a combination of factors, including a strong post-pandemic rebound in demand for long-haul travel, persistent supply chain disruptions, and production challenges at both Boeing and Airbus.
Question: How long is the widebody aircraft shortage expected to last?
Answer: According to Aengus Kelly, CEO of AerCap, the world’s largest aircraft leasing company, the supply issues are expected to persist for the rest of the decade.
Question: What are the main production issues at Boeing and Airbus?
Answer: Boeing is facing delays with its 777X program and has had quality control issues with the 787 Dreamliner. Airbus is dealing with supplier complications for its A350 and has also faced delays with its A350 freighter variant.
Sources: Reuters
Photo Credit: Reuters
Aircraft Orders & Deliveries
Boeing and Icelease Agree on Up to Three 767-300BCF Aircraft
Icelease signs for up to three Boeing 767-300BCF aircraft, with conversions at ST Engineering Singapore starting Q1 2027.
The Boeing Company and aircraft lessor Icelease have finalized an agreement for up to three Boeing 767-300 Boeing Converted Freighter (BCF) aircraft, marking the leasing firm’s expansion into the medium widebody cargo market.
Announced in a press release on November 2, 2026, the transaction includes one firm order and options for two additional conversions. The aircraft will join the managed cargo portfolio of IAT Leasing, a Dublin-based sister company to Icelease.
Conversion timeline and operational details
The formal signing ceremony for the agreement took place on October 22, 2026, during the Cargo Facts Symposium. The physical conversion work will be executed at ST Engineering’s airframe maintenance, repair, and overhaul (MRO) facilities located in Singapore.
Induction of the first Boeing 767-300 aircraft for conversion is scheduled for the first quarter of 2027. Delivery of the completed Boeing 767-300BCF to Icelease and IAT Leasing is expected to follow in the second quarter of 2027. The Boeing Converted Freighter programs are managed by The Boeing Company’s Global Services division.
Lindsey Douglas, Vice President of Cabin, Modifications, Maintenance and Digital Services at The Boeing Company, stated that the agreement underlines the continued collaboration between the two companies to meet global cargo demand.
Sigthor Einarsson, Managing Partner at Icelease, noted the strategic importance of the deal for the lessor’s broader fleet strategy.
“This agreement with Boeing to convert up to three Boeing 767 aircraft marks an important milestone for both Icelease and its Dublin-based sister company IAT Leasing,” Einarsson said.
Icelease and IAT Leasing’s growing cargo portfolio
The Boeing 767-300BCF order builds upon an established relationship between the manufacturer and the lessor. Icelease, an aircraft leasing company with a 21-year history, specializes in aircraft acquisitions, leasing, operations, finance, and investor relations. The firm was originally formed as a spinoff from Icelandair in 2005.
On November 14, 2021, Icelease placed an order for 11 Boeing 737-800 Boeing Converted Freighter (737-800BCF) aircraft during the Dubai Airshow. That order established Icelease as the launch customer for a new conversion line at Boeing’s London Gatwick MRO facility.
The newly ordered widebody freighters will be managed by IAT Leasing. Incorporated in late 2023, IAT Leasing is owned by four equity partners. The Dublin-based entity has rapidly built a portfolio of approximately 40 narrowbody and widebody passenger and Cargo aircraft, which are leased to operators globally. The company’s current managed cargo portfolio already includes seven Boeing 737-800BCF aircraft.
“The history between Icelease and Boeing dates over 20 years and includes a multitude of new aircraft deliveries as well as cargo conversions,” Einarsson said. “The Boeing 767-300BCF will join the growing managed cargo aircraft portfolio of IAT Leasing, which already includes seven Boeing 737-800BCF and other freighters leased to various customers.”
Widebody freighter market outlook
The Boeing 767-300BCF is positioned to serve regional and long-haul cargo networks as a highly efficient medium widebody converted freighter. The aircraft offers a payload capacity of 57 tonnes and a maximum range of 3,300 nautical miles.
The Icelease order aligns with broader industry forecasts regarding long-term air cargo growth. On October 28, 2026, The Boeing Company released projections indicating that the global freighter fleet will exceed 4,000 airplanes by 2045. The manufacturer anticipates that air cargo traffic will double over the same period, providing a sustained demand environment for passenger-to-freighter conversion programs across both narrowbody and widebody platforms.
AirPro News analysis
We view Icelease’s transition from narrowbody to medium widebody conversions as a natural progression for lessors seeking to capture higher-yield cargo segments. While the Boeing 737-800BCF serves domestic and regional express networks effectively, the Boeing 767-300BCF provides the volume and range necessary for intercontinental e-commerce flows. By securing conversion slots at ST Engineering for 2027, Icelease and IAT Leasing are positioning their portfolio to absorb capacity demands as older widebody freighters face retirement toward the end of the decade. The decision to allocate these assets to the recently formed IAT Leasing also highlights the robust investor appetite for dedicated freighter leasing vehicles.
Photo Credit: Boeing
Aircraft Orders & Deliveries
AerCap Leases Two Boeing 777-300ERSF to Turkish Airlines
AerCap finalizes lease of two Boeing 777-300ERSF freighters to Turkish Airlines, with deliveries scheduled for 2027.
AerCap Holdings N.V. has finalized lease agreements with Turkish Airlines for two Boeing 777-300ERSF converted freighters, with deliveries scheduled between March and September 2027.
Announced on October 29, 2026, the transaction expands the Turkish flag carrier’s dedicated cargo capacity while utilizing Etihad Engineering’s maintenance, repair, and overhaul (MRO) facility in Abu Dhabi for the passenger-to-freighter (P2F) modifications. In a press release detailing the agreement, the Dublin-based aviation lessor emphasized the strategic alignment between the aircraft’s capabilities and the airline’s expanding freight network.
Expanding Turkish Airlines’ cargo operations
The agreement builds on an existing relationship between AerCap and Turkish Airlines, which operates a large international network requiring substantial dedicated cargo lift. The addition of the two widebody freighters is intended to support the carrier’s volume requirements on high-demand international routes.
Peter Anderson, Chief Commercial Officer at AerCap, stated that the aircraft will provide the airline with additional cargo capacity combined with the performance capabilities specific to the 777-300ERSF platform. Financial terms of the lease agreements, including the exact lease duration and the specific aircraft serial numbers, were not disclosed in the announcement.
The Big Twin conversion program
The Boeing 777-300ERSF, marketed as “The Big Twin,” is a P2F conversion program developed through a joint venture between AerCap and Israel Aerospace Industries (IAI). It represents the first program designed to convert the Boeing 777-300ER into a dedicated freighter configuration.
According to AerCap’s cargo division, the 777-300ERSF offers 25 percent more cargo volume than the factory-built Boeing 777-200LRF. This increased capacity positions the converted twin-engine aircraft as a cost-effective replacement for aging four-engine Boeing 747 freighters currently operating in the global fleet.
AerCap delivered the first 777-300ERSF to launch customer Kalitta Air in September 2025. Since that initial delivery, the lessor has handed over aircraft to Fly Meta and secured lease agreements with other major operators, including Ethiopian Airlines and China Southern Group.
Regional conversion strategy in Abu Dhabi
The physical conversion of the two aircraft destined for Turkish Airlines will be executed at the Etihad Engineering MRO hub in Abu Dhabi, United Arab Emirates. This facility serves as a dedicated regional conversion center for the 777-300ERSF program.
Anderson highlighted the strategic importance of the location, noting that the Abu Dhabi facility provides a regional platform capability that enables aircraft to be converted in the Middle East prior to delivery. This localized approach is designed to efficiently serve customers across the Europe, Middle East, and Africa (EMEA) market.
“The dedicated 777-300ERSF conversion facility at Etihad Engineering’s MRO hub in Abu Dhabi provides an important regional platform capability, enabling the aircraft to be converted in the Middle East ahead of delivery to Turkish Airlines,” Anderson said.
AerCap’s broader market position
The Turkish Airlines agreement follows a period of strong financial performance for AerCap. On October 28, 2026, the company reported its third-quarter financial results, citing record adjusted earnings per share and raising its full-year 2026 guidance amid high lease rates and sustained demand for aviation assets.
As of September 30, 2026, AerCap’s total portfolio included 1,537 owned and managed aircraft, alongside approximately 1,300 engines and over 300 helicopters. The company’s dedicated cargo division manages a fleet of approximately 110 owned, managed, and on-order freighters, having completed more than 160 passenger-to-freighter conversions to date.
AirPro News analysis
We view the placement of 777-300ERSF aircraft with a major network carrier like Turkish Airlines as a strong validation of the Big Twin program’s economic proposition. As operators look to phase out older Boeing 747 freighters, the 25 percent volume advantage over the 777-200LRF makes the converted 300ER an attractive middle ground between factory-built twin-engine freighters and legacy four-engine platforms. Utilizing the Etihad Engineering facility in Abu Dhabi for a European customer also demonstrates the logistical efficiency of AerCap’s decentralized conversion strategy, reducing ferry times and regional friction for EMEA operators.
Photo Credit: AerCap
Aircraft Orders & Deliveries
CDB Aviation Leases Additional Boeing 737-800 to Neos
CDB Aviation will deliver a Boeing 737-800 to Italian leisure carrier Neos in November 2026, expanding a partnership begun in 2021.
Irish aircraft lessor CDB Aviation will expand its existing relationship with Italian leisure carrier Neos S.p.A. by leasing the airline one additional Boeing 737-800 narrowbody aircraft. The aircraft is scheduled for delivery in November 2026 and will support the carrier’s intra-European and intercontinental route networks.
The agreement, announced in an October 28, 2026, press release, builds upon a leasing partnership established between the two companies in 2021. The transaction highlights continued demand for current-generation narrowbody assets to sustain short- and medium-haul leisure operations.
Expanding the Neos narrowbody fleet
Neos, a wholly owned subsidiary of Alpitour S.p.A. based at Milan Malpensa Airport (MXP), operates an all-Boeing fleet. The airline currently utilizes 18 aircraft, comprising the Boeing 737-800, Boeing 737 MAX 8, and widebody Boeing 787-9 Dreamliner.
The Boeing 737-800 serves as a core asset for the airline’s short- to medium-haul leisure routes. Neos deploys these narrowbody aircraft on intra-European and select intercontinental flights. This narrowbody capacity complements its widebody Boeing 787-9 Dreamliner fleet, which is dedicated to long-haul operations across the carrier’s 85 global destinations in Europe, Africa, Asia, the Middle East, and the Americas.
Marco Brusa, Chief Operating Officer of Neos, stated that the planned addition reflects confidence in the lessor as a trusted partner.
“We are pleased to further strengthen our partnership with CDB Aviation with the planned addition of this Boeing 737-800 to our fleet,” Brusa said. “This agreement builds on our established relationship and reflects our confidence in CDB Aviation as a trusted partner. We look forward to welcoming the aircraft and continuing our successful collaboration.”
A growing lessor-operator partnership
The commercial relationship between CDB Aviation and Neos began in 2021 with an initial agreement covering two Boeing 737-800s. CDB Aviation officially announced the delivery of those two aircraft on February 7, 2023. Those initial airframes were configured with 186 single-class seats to support the carrier’s network.
CDB Aviation, a wholly owned Irish subsidiary of China Development Bank Financial Leasing Co., Ltd., operates globally from its Dublin headquarters. As of early 2025, the lessor reported a fleet of 521 owned and committed assets, with aircraft placed at 85 airlines across 40 countries.
Gavan Daly, Head of Commercial EMEA at CDB Aviation, noted the company’s satisfaction with the expanded agreement.
“We are delighted to deepen our partnership with Neos through the agreement to lease this additional 737-800 from CDB Aviation’s portfolio,” Daly said.
Photo Credit: CDB Aviation
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